2.1.4 Ethics, the environment and business

Which of the following is an example of a business behaving ethically?

• Paying employees above the living wage
• Buying non fair trade products rather than the fair trade alternative
• Paying suppliers the lowest possible price for raw materials
• Setting high retail prices as the only producer of an essential product

Which of the following methods would an environmentally responsible business use to manage waste?

• Send all waste to landfill
• Reduce the amount of waste created and recycle where possible
• Incinerate waste
• Use non-recyclable packaging

Which of the following best describes the term pressure group?

• An individual that has shares in a business
• Anyone who has an interest or is affected by the activities of a business
• An individual or organisation that provides a business with materials
• An organisation with shared aims that seek to influence opinions, decisions and policy

Which of the following statements best describes the term ethical behaviour? When a business behaves in a way that

• Is classed as morally wrong
• Minimises costs
• All stakeholders consider fair and honest
• Maximises profits

Which of the following best describes the term trade-off?

• Having more of one thing may mean having less of another
• Having more of one thing may mean having even more of another
• Having the same amounts of everything
• Having less of everything

Pressure groups are campaigning for the replacement of single use plastic items, such as straws, with sustainable alternatives. A fast food outlet has responded by providing customers with paper straws. Which element of the marketing mix has changed?

• Product
• Price
• Promotion
• Place

Businesses often face a trade-off between environmental responsibility and profit. Which of the following is an example of a cosmetics business prioritising profit over the environment?

• Using more expensive ingredients that create less pollution
• Using less expensive ingredients that create less pollution
• Using more expensive ingredients that create more pollution
• Using less expensive ingredients that create more pollution

Which of the following statements best describes the term sustainability?

• When a business behaves in a way that is viewed as morally right
• The contamination of the environment
• When a business considers its behaviour as ethical
• The use of resources which does not lead to environmental damage

Which of the following is an example of how a business could accept greater environmental responsibility?

• Reduce the trade credit period to pay suppliers by five days
• Pay material suppliers a fair price for any goods purchased
• Use more fuel efficient methods to transport bulky products
• Pay all employees above the National Living Wage

Which of the following behaviours by a car manufacturer could be classed as unethical?

• Producing vehicles with high fuel consumption
• Researching alternative, environmentally friendly, fuel types
• Producing energy efficient hybrid cars
• Researching new, advanced, vehicle safety features